Quick Value #274 - Energy MRO Distributors (Pt. II)
An early look at a recent small-cap merger announcement
Today’s post:
Recently announced “merger of equals”
Clean pro-forma balance sheet (0.5x net leverage)
Pro-forma shares trading at 7.5x EBITDA (pre-synergy) and 10x FCF
Both companies executing on existing buyback authorizations (10% each)
Quick reminder — this is a “premium” post for paying subs; next week will be a “free” edition. For newer subscribers, my write-ups are meant to be a “jumping off point” for the idea generation process (i.e. a surface level review). Check out past write-ups here and my home base page here.